Method and apparatus for managing transactions

ABSTRACT

A system receives account access information from a user. The account is then accessed using the received access information. Data is harvested from a web page associated with the account or received from another financial data source. The user&#39;s ability to access the account is authenticated based on the obtained information.

RELATED APPLICATIONS

This application is a continuation-in-part of co-pending applicationSer. No. 09/665,919, filed Sep. 20, 2000.

TECHNICAL FIELD

The present invention relates to the handling of transactions, such asfinancial transactions and, more particularly, to the management ofrisks and the authentication of information associated with varioustransactions.

BACKGROUND

Customers of financial institutions (both individual customers andbusinesses) typically maintain multiple financial accounts at one ormore financial institutions. Financial institutions include, forexample, banks, savings and loans, credit unions, mortgage companies,lending companies, and stock brokers. A customer's financial accountsmay include asset accounts (such as savings accounts, checking accounts,certificates of deposit (CDs), mutual funds, bonds, and equities) anddebt accounts (such as credit card accounts, mortgage accounts, homeequity loans, overdraft protection, and other types of loans).

In many situations, a user's asset accounts may not be earning the bestavailable interest rate or the user's debt accounts my not be at themost competitive interest rate. It would be to the user's benefit toadjust the funds between different accounts to maximize the interestearned in the asset accounts and/or minimize the interest paid in thedebt accounts. For example, a user may have a checking account that paysno interest, but has a high balance. A portion of the funds in thechecking account could be transferred to a savings account or otherasset account that pays interest on the funds in the account. Similarly,a user with a high credit card balance could save money if a portion ofthe credit card balance was transferred to a home equity line of creditat a lower interest rate.

If a user identifies funds to be transferred between different accounts,the user is then required to execute the necessary transactions. Toexecute these transactions, the user may need to visit one or morefinancial institutions and request the appropriate fund transfers.However, if one or more of the financial institutions is located in adistant town, the fund transfers may need to be processed by check orbank wire. Alternately, the user may execute some of the transactionsthrough an online banking service, if the financial institution supportsonline banking. However, typical online banking services do not permitthe transfer of funds between two different financial institutions.Thus, if a user wants to transfer funds, for example, from a checkingaccount at a bank to a money market account at a stock broker, the usercannot generally execute the transfer using online banking.

Instead, the user needs to withdraw funds manually using, for example, acheck and manually deposit the funds in the second account (either inperson or by mail). Since the second account may place a hold on thedeposit, the actual fund transfer may not occur for a week (or longer)depending on the amount of the check, the policies of the financialinstitutions, and any delays involved with mailing the check. A bankwire provides a faster method of transferring funds between financialinstitutions, but is not generally cost-effective for small transfers(e.g., transfers of less than a few thousand dollars), due to the costsassociated with the bank wire. For small transfers, the costs associatedwith the bank wire may exceed the interest savings generated by thetransfer.

Furthermore, to execute a particular transaction between two financialinstitutions that support the online transfer of funds, the user mustconfigure a particular transaction for each possible combination ofaccounts that may have funds transferred between them. This is tediousand requires the user to remember the differences between the onlineinterfaces at the different financial institutions.

If a user's financial institutions support online transfers of funds,before performing any transfers between two financial institutions thatsupport the online transfer of funds, the user must configure aparticular transaction for each possible combination of accounts thatmay have funds transferred between them. This is tedious and requiresthe user to remember the differences between the online interfaces atthe different financial institutions.

Prior to implementing any financial transaction for a particular user orinvolving a particular account, it is important to authenticate the userrequesting the transaction, authenticate that user's ability toimplement the requested transaction, and understand any risks involvedwith the user, the requested transaction, or the accounts involved inthe requested transaction. The systems and procedures available today donot provide a convenient mechanism for transferring funds betweenaccounts at different financial institutions.

The systems and methods described herein addresses these and otherproblems by performing user authentication and risk analysis based onthe accounts and the users or entities involved in the requestedtransaction.

SUMMARY

A particular embodiment receives financial account access informationfrom a user. Information is obtained regarding the financial accountfrom a financial data source. The user's ability to access the financialaccount is authenticated based on the obtained information.

Another embodiment receives account information from a user. The accountis accessed using the received access information. Data is harvestedfrom a web page associated with the account. The user's ability toaccess the account is authenticated based on the obtained information.

In a described implementation, the authentication information includes auser name and an associated password for accessing the particularaccount.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 illustrates an exemplary network environment in which variousservers, computing devices, and financial management systems exchangedata across a network, such as the Internet.

FIG. 2 illustrates an example of the interaction between a particularpair of financial institution servers, a market information service, aclient computer, and a financial management system.

FIG. 3 is a block diagram showing pertinent components of a computer inaccordance with the invention.

FIG. 4 is a block diagram showing exemplary components and modules of afinancial management system.

FIG. 5 is a block diagram showing exemplary components and modules of anasset analysis and recommendation module.

FIG. 6 is a block diagram showing exemplary components and modules of adebt analysis and recommendation module.

FIG. 7 is a block diagram showing exemplary components and modules of abalance sheet analysis and recommendation module.

FIG. 8 is a flow diagram illustrating a procedure for identifyingfinancial transactions to optimize a user's asset account balances.

FIG. 9 is a flow diagram illustrating a procedure for identifyingfinancial transactions to optimize a user's debt account balances.

FIG. 10 is a flow diagram illustrating a procedure for identifyingfinancial transactions to optimize a user's balance sheet.

FIG. 11 is a flow diagram illustrating a procedure for automaticallyoptimizing a user's asset accounts, debt accounts, and balance sheet.

FIG. 12 is a table illustrating various information associated withdifferent financial institutions.

FIG. 13 is a table illustrating various customer information related tofinancial accounts and user preferences.

FIGS. 14-15 illustrate exemplary user interface screens illustratingvarious account entry fields and account recommendations.

FIG. 16 illustrates an exemplary environment in which funds aretransferred between various financial institutions using a paymentnetwork.

FIG. 17 is a flow diagram illustrating a procedure for transferringfunds between two financial institutions.

FIG. 18 illustrates another exemplary environment in which funds aretransferred between various financial institutions using multiplepayment networks.

FIG. 19 illustrates another environment in which funds are transferredbetween various financial institutions.

FIG. 20 is a block diagram showing exemplary components and modules ofan authentication and risk analysis module.

FIG. 21 is a flow diagram illustrating a procedure for authenticating auser's identity.

FIG. 22 is a flow diagram illustrating a procedure for verifying theaccount access rights of a particular user and analyzing risksassociated with the particular user.

DETAILED DESCRIPTION

The system and methods described herein automatically authenticate andevaluate risk associated with a particular user, a particular account,and/or a particular transaction, such as a financial transaction. Aparticular user's identity can be authenticated using informationprovided by the user, such as driver's license number, social securitynumber, and address. The user's ability to access a particular accountcan be authenticated by utilizing a login name and associated passwordassociated with the particular account. A particular risk associatedwith the user may be determined as well as a risk associated with theparticular accounts involved in a requested financial transaction.

As used herein, the terms “account holder”, “customer”, “user”, and“client” are interchangeable. “Account holder” refers to any personhaving access to an account, such as a financial account at a financialinstitution. A particular account may have multiple account holders(e.g., a joint checking account having husband and wife as accountholders or a corporate account identifying several corporate employeesas account holders. Various financial account and financial institutionexamples are provided herein for purposes of explanation. However, itwill be appreciated that the system and procedures described herein canbe used with any type of asset account and any type of debt account.Example asset accounts include savings accounts, money market accounts,checking accounts (both interest-bearing and non-interest-bearing),certificates of deposit (CDs), mutual funds, bonds, and equities.Example debt accounts include credit card accounts, mortgage accounts,home equity loans, overdraft protection, margin accounts, personalloans, and other types of loans. Exemplary financial institutionsinclude banks, savings and loans, credit unions, mortgage companies,mutual fund companies, lending companies, and stock brokers.

Further, particular examples discussed herein are related to financialtransactions involving financial accounts at financial institutions.However, the methods and systems described herein may be applied to anytype of transaction involving any type of account. For example, a dataaggregation system may aggregate data from multiple sources, such asmultiple financial accounts, multiple email accounts, multiple onlineaward (or reward) accounts, and the like. Similarly, authentication andverification systems may authenticate and/or verify a user's right toaccess one or more accounts or execute a transaction involving one ormore accounts. Thus, the methods and systems described herein may beapplied to a data aggregation system or any other account managementsystem instead of the financial management system discussed in theexamples provided herein.

Various attributes associated with an asset account and/or a debtaccount are discussed herein. These attributes are used to analyzevarious accounts and make recommendations that would benefit the accountholder. Example attributes include interest rate, loan repayment terms,minimum balance, type of collateral, etc. Although particular examplesare discussed herein with reference to interest rates, it will beappreciated that the methods and systems described herein are applicableto any type of attribute.

FIG. 1 illustrates an exemplary network environment 100 in which variousservers, computing devices, and financial management systems exchangedata across a data communication network. The network environment ofFIG. 1 includes multiple financial institution servers 102, 104, and 106coupled to a data communication network 108, such as the Internet. Amarket information service server 110 and a financial management system118 are also coupled to network 108. Additionally, a wireless device 112and a client computer 114 are coupled to network 108. Wireless device112 may be a personal digital assistant (PDA), a handheld or portablecomputer, a cellular phone, a pager, or any other device capable ofcommunicating with other devices via a wireless connection. A financialinformation provider 116 is coupled between network 108 and clientcomputer 114.

Network 108 may be any type of data communication network using anycommunication protocol. Further, network 108 may include one or moresub-networks (not shown) which are interconnected with one another.

The communication links shown between the network 108 and the variousdevices (102-106 and 110-118) shown in FIG. 1 can use any type ofcommunication medium and any communication protocol. For example, one ormore of the communication links shown in FIG. 1 may be a wireless link(e.g., a radio frequency (RF) link or a microwave link) or a wired linkaccessed via a public telephone system or another communication network.Wireless device 112 typically accesses network 108 via a wirelessconnection to another communication network that is coupled to network108. Certain devices, such as servers, may be coupled to a local areanetwork (LAN), which is coupled to network 108. Client computer 114 mayaccess network 108 in different ways. First, client computer 114 maydirectly access network 108, for example, by using a modem to access apublic telephone network (e.g., a public switched telephone network(PSTN)) that is coupled to network 108. Alternately, client computer 114may access financial information provider 116, which establishes aconnection to network 108. Financial information provider 116 may act asa “buffer” between network 108 and client computer 114, or may allowcommands and data to simply pass-through between the network 108 and theclient computer 114.

Each of the financial institution servers 102, 104, and 106 aretypically associated with a particular financial institution and storedata for that financial institution, such as customer account data. Themarket information service server 110 may represent one or more servicesthat collect and report information regarding current financial marketconditions. For example, a particular market information service maycollect information from many financial institutions to generate areport identifying the average interest rates for savings, checking, orother accounts. The report may also identify the highest rates for eachtype of account and the financial institution offering those rates.Multiple market information service servers 110 may be coupled tonetwork 108, each server providing a different type of market data.

Financial management system 118 performs various account analysisfunctions to determine whether a user's financial accounts (e.g., bothasset accounts and debt accounts) are optimized. Additionally, financialmanagement system 118 is capable of initiating the automatic transfer offunds between accounts at one or more financial institutions. Theseanalysis and fund transfer functions are discussed in greater detailbelow. Wireless device 112 and client computer 114 allow a user toaccess information via the network 108. For example, the user can accessaccount information from one of the financial institution servers 102,104, or 106, access current interest rate data from market informationservice server 110, or send a request for an analysis of the user'sfinancial accounts to financial management system 118. Financialinformation provider 116 acts as an intermediary between client computer114 and other devices coupled to network 108. For example, clientcomputer 114 generates a request for data or account analysis andcommunicates the request to the financial information provider 116. Thefinancial information provider 116 then retrieves the requested data orinitiates the requested account analysis on behalf of the user of clientcomputer 114.

FIG. 2 illustrates an example of the interaction between a particularpair of financial institution servers 132 and 134, a market informationservice server 140, a client computer 136, and a financial managementsystem 138. In this example, each financial institution server 132 and134 is associated with a different financial institution. Clientcomputer 136 is capable of accessing financial institution server 132via a communication link 142 and accessing financial institution server134 via a communication link 144. For example, the user of clientcomputer 136 may retrieve account information or interest rateinformation from one or both of the financial institution servers 132,134. Client computer 136 is also capable of interacting with financialmanagement system 138 via a communication link 146. The user of clientcomputer 136 may access financial management system 138, for example, tohave the system analyze the user's financial accounts and automaticallyinitiate the transfer of funds between accounts.

Financial management system 138 is coupled to the two financialinstitution servers 132 and 134 via two communication links 148 and 150,respectively. Communication links 148 and 150 allow the financialmanagement system 138 to retrieve information from the financialinstitution servers 132, 134, and execute transactions on the financialinstitution servers on behalf of the user of client computer 136.Financial management system 138 is also coupled to market informationservice server 140 through a communication link 152, which allows thefinancial management system to retrieve various information regardingmarket interest rates and other market data. Financial institutionservers 132 and 134 are capable of communicating with one another via acommunication link 154, which allows the servers to exchange data andother information with one another.

Communication links 142-154 may be dial-up connections and/orconnections via one or more networks of the type discussed above withrespect to FIG. 1.

FIG. 3 is a block diagram showing pertinent components of a computer 180in accordance with the invention. A computer such as that shown in FIG.3 can be used, for example, to perform various financial analysisoperations such as accessing and analyzing a user's financial accountinformation to make account recommendations. Computer 180 can also beused to access a web site or, other computing facility to access thevarious financial analysis functions. The computer shown in FIG. 3 canfunction as a server, a client computer, or a financial managementsystem, of the types discussed herein.

Computer 180 includes at least one processor 182 coupled to a bus 184that couples together various system components. Bus 184 represents oneor more of any of several types of bus structures, such as a memory busor memory controller, a peripheral bus, and a processor or local bususing any of a variety of bus architectures. A random access memory(RAM) 186 and a read only memory (ROM) 188 are coupled to bus 184.Additionally, a network interface 190 and a removable storage device192, such as a floppy disk or a CD-ROM, are coupled to bus 184. Networkinterface 190 provides an interface to a data communication network suchas a local area network (LAN) or a wide area network (WAN) forexchanging data with other computers and devices. A disk storage 194,such as a hard disk, is coupled to bus 184 and provides for thenon-volatile storage of data (e.g., computer-readable instructions, datastructures, program modules and other data used by computer 180).Although computer 180 illustrates a removable storage 192 and a diskstorage 194, it will be appreciated that other types ofcomputer-readable media which can store data that is accessible by acomputer, such as magnetic cassettes, flash memory cards, digital videodisks, and the like, may also be used in the exemplary computer.

Various peripheral interfaces 196 are coupled to bus 184 and provide aninterface between the computer 180 and the individual peripheraldevices. Exemplary peripheral devices include a display device 198, akeyboard 200, a mouse 202, a modem. 204, and a printer 206. Modem 204can be used to access other computer systems and devices directly or byconnecting to a data communication network such as the Internet.

A variety of program modules can be stored on the disk storage 194,removable storage 192, RAM 186, or ROM 188, including an operatingsystem, one or more application programs, and other program modules andprogram data. A user can enter commands and other information intocomputer 180 using the keyboard 200, mouse 202, or other input devices(not shown). Other input devices may include a microphone, joystick,game pad, scanner, satellite dish, or the like.

Computer 180 may operate in a network environment using logicalconnections to other remote computers. The remote computers may bepersonal computers, servers, routers, or peer devices. In a networkedenvironment, some or all of the program modules executed by computer 180may be retrieved from another computing device coupled to the network.

Typically, the computer 180 is programmed using instructions stored atdifferent times in the various computer-readable media of the computer.Programs and operating systems are often distributed, for example, onfloppy disks or CD-ROMs. The programs are installed from thedistribution media into a storage device within, the computer 180. Whena program is executed, the program is at least partially loaded into thecomputer's primary electronic memory. As described herein, the inventionincludes these and other types of computer-readable media when the mediacontains instructions or programs for implementing the steps describedbelow in conjunction with a processor. The invention also includes thecomputer itself when programmed according to the procedures andtechniques described herein.

For purposes of illustration, programs and other executable programcomponents are illustrated herein as discrete blocks, although it isunderstood that such programs and components reside at various times indifferent storage components of the computer, and are executed by thecomputer's processor. Alternatively, the systems and proceduresdescribed herein can be implemented in hardware or a combination ofhardware, software, and/or firmware. For example, one or moreapplication specific integrated circuits (ASICs) can be programmed tocarry out the systems and procedures described herein.

FIG. 4 is a block diagram showing exemplary components and modules of afinancial management system 220. A communication interface 222 allowsthe financial management system 220 to communicate with other computingsystems, such as servers, client computers, and portable computingdevices. In one embodiment, communication interface 222 is a networkinterface to a LAN, which is coupled to another data communicationnetwork, such as the Internet.

The financial management system 220 stores customer data 224, such ascustomer account information, online banking login name and password,and user preferences. Financial management system 220 also storesfinancial institution data 226 and market information 228. Financialinstitution data 226 includes, for example, transaction routing data,account offerings, account interest rates, and minimum account balances.Market information 228 includes data such as average interest rates fordifferent types of accounts (both asset accounts and debt accounts), thebest available interest rates for each type of account, and thefinancial institutions offering the best available interest rates.

An asset analysis and recommendation module 230 analyzes various assetaccounts to determine whether the accounts are earning the bestavailable interest rates (or close to the best interest rates) andwhether the fund allocation among the asset accounts is optimal or closeto optimal. If fund adjustments would benefit the account holder, thenmodule 230 makes the appropriate recommendations to the account holder.The asset accounts analyzed may be associated with two or more differentfinancial institutions. A debt analysis and recommendation module 232analyzes various debt accounts to determine whether the accounts arepaying the most competitive (i.e., the lowest) interest rates or closeto the best interest rates. Module 232 also determines whether theallocation of funds among the debt accounts is optimal or close tooptimal, and makes recommendations, if necessary, to adjust funds in amanner that reduces the overall interest payments. The debt accountsanalyzed may be associated with two or more different financialinstitutions.

A balance sheet analysis and recommendation module 234 analyzes bothasset accounts and debt accounts to determine whether the allocation offunds among all of the accounts is optimal or close to optimal. If fundadjustments would benefit the account holder, then the balance sheetanalysis and recommendation module 234 makes the appropriaterecommendations to the account holder.

A report generator 236 generates various types of reports, such asaccount activity history, current recommendations to adjust funds amongaccounts, or a report comparing the current market interest rates to theinterest rates of a user's current accounts. A transaction executionmodule 238 executes financial transactions on behalf of account holders.For example, an account holder may request that the financial managementsystem 220 execute the recommendations generated by one or more of thethree analysis and recommendation modules 230, 232, and 234. In thisexample, transaction execution module 238 identifies the recommendationsand executes the financial transactions necessary to implement therecommendations. An authentication and risk analysis module 240 verifiesthat the user accessing financial management system. 220 is authorizedto access a particular account and analyzes the risks associated withallowing a particular user to access the financial management system orexecute a particular transaction using the financial management system.

FIG. 5 is a block diagram showing exemplary components and modules ofasset analysis and recommendation module 230. An asset accountinformation collection module 250 collects information about a user'sasset accounts. When a user accesses the financial management system andrequests an analysis of the user's asset accounts, the system promptsthe user to enter account information for all of the user's assetaccounts. The information provided for each account may include the nameof the financial institution, the account number, and the login name andpassword for online access to the account. This information is typicallystored by the financial management system to avoid asking the user tore-enter the same information in the future. Based on the informationprovided by the user, the asset account information collection module250 is able to access the user's accounts and determine the balance ofeach account as well as other information such as the interest rate andminimum balance for the account.

After collecting the user's asset account information, the collectionmodule 250 organizes the account information into a common format andcommunicates the information to an asset analysis and recommendationengine 254 for processing.

A financial institution and market data collection module 256 collectsinformation about particular financial institutions (e.g., transactionrouting information and account offerings) and information about currentmarket interest rates. The information about financial institutions maybe retrieved from the financial institutions themselves or from one ormore market information services that provide information about variousfinancial institutions. The information relating to current marketinterest rates is collected from one or more market informationservices. After collecting the financial institution information and themarket data, the collection module 256 communicates the collectedinformation and data to the asset analysis and recommendation engine254.

A default asset analysis logic 258 defines a default set of logic rulesused to analyze a user's asset accounts. These default logic rules areused if the user does not create their own set of logic rules and doesnot select from one of several sets of alternate asset analysis logicrules 260 and 262. The alternate logic rules 260 and 262 may providedifferent approaches to asset account analysis (e.g., a conservativeapproach, a moderate approach, or an aggressive approach). In particularembodiments, at least one of the alternate logic rules 260, 262 isassociated with a financial and/or investment celebrity, who defines theparticular set of logic rules based on their financial and/or investmentexpertise.

The particular logic rules selected for each user may be different basedon the sets of logic rules chosen by the user. Additionally, the logicrules selected for a particular user may change over time as thefinancial management system learns more about the user's payment orspending habits. For example, if the user regularly makes a $1000payment from a particular checking account on the 15th of each month, arule may be created by the financial management system to ensure thatthe checking account has at least a $1000 balance on the 14th of eachmonth. If the checking account does not have a sufficient balance, thenthe financial management system may recommend a fund transfer to raisethe balance of the checking account to cover the anticipated $1000payment on the 15th. This type of user-specific logic rule may be storedwith the other user data in the financial management system.

Asset analysis and recommendation engine 254 analyzes the user's assetaccount information by applying the various asset analysis logic rulesto the asset account information. The asset analysis and recommendationengine 254 also considers market data collected by collection module 256when analyzing the user's asset accounts. After analyzing the user'sasset accounts, the asset analysis and recommendation engine 254generates one or more recommendations to adjust the fund allocationamong the asset accounts. The recommendation may also include opening anew asset account (e.g., an account that pays a higher interest rate)and/or closing an existing asset account (e.g., an account that pays alow interest rate). The recommendations and analysis results are outputon communication link 264 for use by other modules or components in thefinancial management system.

FIG. 6 is a block diagram showing exemplary components and modules ofdebt analysis and recommendation module 232. A debt account informationcollection module 270 collects information about a user's debt accounts.When a user accesses the financial management system and requests ananalysis of the user's debt accounts, the system prompts the user toenter account information for each of the user's debt accounts. Theinformation provided for each account may include the name of thefinancial institution, the account number, and information necessary toaccess the account online. This information is typically stored by thefinancial management system to avoid asking the user to re-enter thesame information in the future. Based on the information provided by theuser, the debt account collection module 270 accesses the user's debtaccounts and determines the balance of each account as well as otherinformation, such as the interest charged and the maximum balance forthe account.

After collecting the user's debt account information, the collectionmodule 270 organizes the account information into a common format andcommunicates the account information to a debt analysis andrecommendation engine 274 for processing.

A financial institution and market data collection 276 collectsinformation regarding particular financial institutions and informationabout current market interest rates. The information relating tofinancial institutions may be retrieved from the financial institutionsthemselves or from one or more market information services that provideinformation about various financial institutions. The informationrelating to current market interest rates is collected from one or moremarket information services. After collecting the financial institutioninformation and the market data, the collection module 276 communicatesthe collected information and data to the debt analysis andrecommendation engine 274.

A default debt analysis logic 278 defines a default set of logic rulesused to analyze a user's debt accounts. These default logic rules areused if the user does not create their own set of logic rules and doesnot select from one of the several sets of alternate debt analysis logic280 and 282. The alternate logic rules 280 and 282 may provide differentapproaches to debt account analysis, such as a conservative approach, amoderate approach, or an aggressive approach. In a particularembodiment, at least one of the alternate logic rules 280, 282 isassociated with a financial and/or investment celebrity, who defines theparticular set of logic rules based on their financial and/or investmentexpertise.

The particular logic rules selected for each user may be different basedon the sets of logic rules chosen by the user. Additionally, the logicrules selected for a particular user may change over time as thefinancial management system learns more about the user's payment orspending habits. For example, if the user has too many expenses (i.e.,the current month's expenses exceed the user's typical monthly income),then the logic rules (applied by the analysis engine) may suggest ashort term loan to cover the expenses, thereby avoiding a situation inwhich the user has insufficient funds to pay bills as they become due.Additionally, if the loan will only be required for a short period oftime, the rules may suggest opening (or taking advantage of an existing)overdraft protection account.

Different debt logic rules may be applied depending on a user's opinionsregarding debt. One user might use the majority of available assets topay down debts, thereby minimizing the user's level of debt. Anotheruser might want to maintain a larger “cushion” of cash and only pay downdebts if the available assets exceed a predetermined amount (e.g.,$10,000). Debt rules from, for example, a celebrity or well-knownfinancial analyst might recommend setting aside savings at the beginningof the month to “force” the appropriate monthly savings. The remainderof the assets are then used to pay monthly bills and other expenses.Other financial analysts may use different sets of logic rules to definethe analysis and handling of asset accounts and debt accounts.

Debt analysis and recommendation engine 274 analyzes the user's debtaccount information by applying the various debt analysis logic rules tothe debt account information. The debt analysis and recommendationengine 274 also considers market data collected by collection module 276when analyzing the user's debt accounts. After analyzing the user's debtaccounts, the debt analysis and recommendation engine 274 generates oneor more recommendations to adjust the fund allocation among the debtaccounts. The recommendation may also include opening a new debt account(e.g., an account with a lower interest rate) and/or closing an existingdebt account (e.g., an account with a high interest rate). Therecommendations and analysis results are output on communication link284 for use by other modules or components in the financial managementsystem.

FIG. 7 is a block diagram showing exemplary components and modules ofbalance sheet analysis and recommendation module 234. An accountinformation collection module 290 collects information about a user'sasset accounts and debt accounts. When a user accesses the financialmanagement system and requests an analysis of the user's balance sheet,the system prompts the user to enter account information for each of theuser's asset accounts and debt accounts. The information provided foreach account may include the name of the financial institution, theaccount number, and information necessary to access the account online.This information is typically stored by the financial management systemto avoid asking the user to re-enter the same information in the future.Based on the information provided by the user, the account collectionmodule 290 accesses the user's debt accounts and determines the balanceof each account as well as other information, such as the interestcharged or earned, and the maximum balance or credit limit associatedwith the account.

After collecting the user's asset and debt account information, thecollection module 290 organizes the account information into a commonformat and communicates the account information to a balance sheetanalysis and recommendation engine 294 for processing.

A financial institution and market data collection 296 collectsinformation regarding particular financial institutions and informationabout current market interest rates for both asset accounts and debtaccounts. The information relating to financial institutions may beretrieved from the financial institutions themselves or from one or moremarket information services that provide information about variousfinancial institutions. The information relating to current marketinterest rates is collected from one or more market informationservices. After collecting the financial institution information and themarket data, the collection module 296 communicates the collectedinformation and data to the balance sheet analysis and recommendationengine 294.

A default balance sheet analysis logic 298 defines a default set oflogic rules used to analyze a user's balance sheet. These default logicrules are used if the user does not create their own set of logic rulesand does not select from one of the several sets of alternate balancesheet analysis logic 300 and 302. The alternate logic rules 300 and 302may provide different approaches to debt account analysis, such as aconservative approach, a moderate approach, or an aggressive approach.In a particular embodiment, at least one of the alternate logic rules300, 302 is associated with a financial and/or investment celebrity, whodefines the particular set of logic rules based on their financialand/or investment expertise.

The particular logic rules selected for each user may be different basedon the sets of logic rules chosen by the user. Additionally, the logicrules selected for a particular user may change over time as thefinancial management system learns more about the user's payment orspending habits. For example, if the user has funds earning a lowinterest rate in a savings account and carries a balance on a creditcard with a high interest rate, the logic rules may suggest applyingsome or all of the funds in the savings account to pay off all or aportion of the balance on the credit card.

Different balance sheet logic rules may be applied depending on a user'sopinions regarding assets and debts. One user might prefer to use themajority of available assets to pay down debts, thereby minimizing theuser's level of debt. Another user might want to maintain a larger“cushion” of cash and only pay down debts if the available assets exceeda predetermined amount (e.g., $5,000).

Balance sheet analysis and recommendation engine 294 analyzes the user'sbalance sheet information by applying the various balance sheet analysislogic rules to the balance sheet information. The balance sheet analysisand recommendation engine 294 also considers financial institution andmarket data collected by collection module 296 when analyzing the user'sbalance sheet. After analyzing the user's balance sheet, the balancesheet analysis and recommendation engine 294 generates one or morerecommendations to adjust the fund allocation among the user's assetaccounts and debt accounts. The recommendation may also include openingone or more new accounts and/or closing one or more existing accounts.The recommendations and analysis results are output on communicationlink 304 for use by other modules or components in the financialmanagement system.

FIG. 8 is a flow diagram illustrating a procedure for identifyingfinancial transactions to optimize a user's asset account balances. Theprocedure begins by analyzing the user's asset accounts (block 320). Theprocedure then determines the best available asset accounts (block 322),for example, by using market interest rate information from a marketinformation service. Next, the procedure determines whether there arebetter accounts for the user's assets (block 324). These “better”accounts may include asset accounts that earn higher interest rates thanthe user's current asset accounts.

If the procedure identifies better accounts for the user's assets, thenthe procedure selects the best alternative account (or accounts) andmakes a recommendation that the user open the alternative account (block326). If the procedure does not identify any better accounts for theuser's assets, then the procedure continues to block 328, where theprocedure determines whether the assets in the user's accounts should beadjusted. If the user's asset accounts should be adjusted, then theprocedure identifies the best adjustment of the user's asset accountsand makes asset adjustment recommendations to the user (block 330).Finally, the user is provided the opportunity to automatically executeany of the recommendations, such as opening one or more new assetaccounts and/or moving funds between asset accounts (block 332). If theuser chooses to have the recommendations executed automatically, thefinancial management system executes the necessary financialtransactions to implement the system's recommendations as discussed ingreater detail below. The procedure described above with respect to FIG.8 may be implemented, for example, by asset analysis and recommendationmodule 230.

FIG. 9 is a flow diagram illustrating a procedure for identifyingfinancial transactions to optimize a user's debt account balances. Theprocedure analyzes the user's debt accounts (block 350) and determinesthe best available debt accounts (block 352). The best available debtaccounts are determined, for example, by using market interest rateinformation from one or more market information services. Next, theprocedure determines whether there are better accounts for the user'sdebts (block 354). These “better” accounts may include debt accountsthat charge lower interest rates than the user's current debt accounts.

If better accounts are identified for the user's debts, then theprocedure selects the best alternative account (or accounts) and makes arecommendation that the user open the alternative account (block 356).If the procedure does not identify any better accounts for the user'sdebts, then the procedure continues to block 358, to determine whetherthe debts in the user's accounts should be adjusted. If the user's debtaccounts should be adjusted, then the procedure identifies the bestadjustment of the user's debt accounts and makes asset adjustmentrecommendations to the user (block 360). Finally, the user is providedthe opportunity to automatically execute any of the recommendations,such as opening one or more new debt accounts and/or moving fundsbetween debt accounts (block 362). If the user chooses to have therecommendations executed automatically, the financial management systemexecutes the necessary financial transactions to implement the system'srecommendations, as discussed below. The procedure described above withrespect to FIG. 9 can be implemented, for example, by debt analysis andrecommendation module 232.

FIG. 10 is a flow diagram illustrating a procedure for identifyingfinancial transactions to optimize a user's balance sheet. The procedureanalyzes the user's balance sheet (block 370) and determines whetherthere is a better distribution of assets and debts across the user'sbalance sheet (block 372). For example, a “better distribution” ofassets and debts may result in greater interest earned by the user orless interest paid by the user. If there is a better distribution ofassets and debts across the user's balance sheet, then the procedureidentifies the optimal allocation of assets and debts and makesrecommendations to the user (block 374).

If the procedure does not identify any better distribution of assets anddebts, then the procedure continues to block 376, to determine whetherthe amounts in the user's asset and debt accounts should be adjusted. Ifthe user's accounts should be adjusted, then the procedure identifiesthe best adjustment of the user's asset and debt accounts and makesadjustment recommendations to the user (block 378). Finally, the user isprovided the opportunity to automatically execute any of therecommendations (block 380), such as moving funds between accounts tomaximize interest earned or minimize interest paid. If the user choosesto have the recommendations executed automatically, the financialmanagement system executes the necessary financial transactions toimplement the system's recommendations. The procedure described abovewith respect to FIG. 10 can be implemented, for example, by balancesheet analysis and recommendation module 234.

A user may choose to have the financial management system 220 (FIG. 4)analyze and make recommendations regarding the user's asset accounts,while ignoring the user's debt accounts. FIG. 8 illustrates an exampleprocedure for this type of analysis and recommendation. Additionally,the user may select specific asset accounts to ignore during theanalysis procedure. For example, the user may have a savings account fora special purpose. Even though the savings account may earn abelow-average interest rate, the user does not want funds transferredinto or out of that savings account. In this example, the user wouldinstruct the financial management system to ignore that particularsavings account.

The user may also choose to have the financial management system analyzeand make recommendations regarding the user's debt accounts, whileignoring the user's asset accounts. FIG. 9 illustrates an exampleprocedure for this type of analysis and recommendation. Additionally,the user may select specific debt accounts to ignore during the analysisprocedure. For example, the user may want to pay-off and close aparticular debt account even though the account has a favorable interestrate. In this example, the user would instruct the financial managementsystem to ignore that particular debt account when performing itsanalysis.

The user can also choose to have the financial management system analyzeand make recommendations regarding both the user's asset accounts anddebt accounts (i.e., analyze the user's balance sheet). FIG. 10illustrates an example procedure for this type of analysis andrecommendation. Additionally, the user may select one or more assetaccounts or debt accounts to ignore during the analysis procedure. Thus,the user has the option of selecting the types of accounts to consider,as well as specific accounts to consider or ignore, when the financialmanagement system performs its analysis and makes recommendations.

FIG. 11 is a flow diagram illustrating a procedure for automaticallyoptimizing a user's asset accounts, debt accounts, and balance sheet.Initially, the procedure determines the best adjustment of the user'sasset accounts (block 400). The best adjustment of the user's assetaccounts may include opening a new account, closing an existing account,and/or transferring funds between accounts (new accounts or existingaccounts). If the user's asset accounts are already optimized, or almostoptimized, the procedure determines that no adjustment of asset accountsis necessary.

Next, the procedure determines the best adjustment of the user's debtaccounts (block 402) and the best adjustment of the user's balance sheet(block 404). The best adjustment of the user's debt accounts and theuser's balance sheet may include opening one or more new accounts,closing one or more existing accounts, and/or transferring funds betweenaccounts (new accounts or existing accounts). If the user's debtaccounts are already optimized, or almost optimized, the proceduredetermines that no adjustment of debt accounts is necessary. Similarly,if the user's balance sheet is already optimized, or almost optimized,then the procedure determines that no adjustment of asset accounts ordebt accounts is necessary.

The various logic rules discussed above, which are used by the financialmanagement system to determine whether funds should be adjusted betweenaccounts, may define how to determine whether accounts are “almostoptimized.” Typical factors that may be considered in determiningwhether accounts are “almost optimized” include: the savings (extrainterest earned or less interest paid) that would result from anadjustment of funds, the difference in interest rates, the time requiredto implement the adjustment of funds, fees associated with theadjustment of funds, and the “risk” associated with the adjustment. The“risk” may be overdrawing an account by leaving insufficient funds tocover unexpected expenses (or expenses that are greater than expected).

For example, if a particular adjustment of funds would result in anincrease in interest earnings of three cents per week, most logic ruleswill consider this situation “almost optimized.” In this situation, thefinancial management system will not recommend the adjustment of fundsbecause the additional interest is insignificant.

After the procedure has determined the best adjustment of the user'saccounts (blocks 400, 402, and 404), the procedure identifies thefinancial institutions involved in the adjustment of the user's accounts(block 406). The financial institutions are determined from theinformation entered by the user when identifying the user's accounts tothe financial management system. Next, the procedure contacts theappropriate financial institutions and/or payment networks and executesthe financial transfers necessary to implement the recommendedadjustments to the user's accounts (block 408). A payment network maybe, for example, the Federal Automated Clearing House (ACH), a debitnetwork, a credit network, the federal wire system, or an ATM network.The financial management system is able to automatically access theuser's accounts by using the login name and password for the account,which is provided by the user when identifying the user's accounts tothe financial management system.

After executing the financial transactions necessary to implement therecommended adjustments to the user's accounts, the a report isgenerated for the user that identifies the financial transfers executed(block 410). Finally, the user's account information is updated in thefinancial management system such that the system has accurate accountbalance information for all of the user's accounts (block 412).

The procedure described above with respect to FIG. 11 can be modifiedbased on the user's preferences with respect to the types of accounts tobe analyzed. For example, if the user selects only asset accounts foranalysis, then the functions associated with blocks 402 and 404 of theprocedure are not performed.

FIG. 12 shows a table 430 illustrating various information associatedwith different financial institutions. The information contained intable 430 may be obtained from the financial institution itself or fromone or more market information services. The information contained intable 430 is periodically updated by comparing the information stored inthe table against the current financial institution information.

The first column of table 430 identifies the name of the financialinstitution and the second column identifies the American BankingAssociation (ABA) number and routing number. The third column indicatesan Internet uniform resource locator (URL) associated with the financialinstitution. The fourth column of table 430 identifies the variousaccount offerings from a particular financial institution. In thisexample, Bank of America offers a savings account, two types of checkingaccounts (interest bearing and non-interest bearing), a three monthcertificate of deposit (CD), a home equity loan, a credit card account,and overdraft protection for a checking account. The next columnindicates the type of account (e.g., an asset account or a debtaccount).

The sixth column of table 430 indicates the current interest rateassociated with each account. In the case of an asset account, theinterest rate is the interest paid to a customer based on the balance inthe account. In the case of a debt account, the interest rate is theinterest charged to a customer based on the outstanding balance of thedebt. The last column in table 430 indicates the minimum balanceassociated with each account. In this example, the debt accounts do nothave a minimum balance. However, a debt account may have a maximumbalance (e.g., the maximum value that can be loaned). Although not shownin FIG. 12, additional account information may be stored in table 430,such as monthly service charges, per-check charges, service charges forATM transactions, or service charges if the minimum balance is notmaintained.

FIG. 13 shows a table 440 illustrating various customer informationrelated to financial accounts and user preferences. Most informationcontained in table 440 is obtained from the user during an account setupprocedure. The current account balance information is typicallyretrieved from the financial institution by the financial managementsystem. The account balance information is periodically updated byretrieving current information from the financial institution.

The first column of table 440 identifies the customer name (the tablecontains customer information for multiple customers accessing the samefinancial management system). The second column identifies a financialinstitution and the third column identifies an account number as well asan online username and password associated with the account number. Theusername and password are used to access the account to perform onlinebanking functions such as executing fund transfers or retrieving currentaccount balances. The fourth column of table 440 identifies the accountsthat the customer has with the financial institution (i.e., activeaccounts). For example, John Smith has five active accounts with Bank ofAmerica (savings, interest checking, home equity, credit card, andoverdraft protection), one active account with Charles Schwab (moneymarket account), and one active account with Rainbow Credit Union(savings account). The next column in table 440 indicates the currentaccount balance for each active account. The last column indicates userpreferences. The user preferences are determined by the user based onthe manner in which the user wants information displayed, the manner inwhich accounts should be analyzed, and the types of recommendations theuser desires. Additionally, the user preferences may specify certainminimum balances or other requirements for all accounts or for specificaccounts. For example, the user preferences for John Smith specify thata minimum balance of $1500 should be maintained in the interest checkingaccount. These user preferences are typically incorporated into thelogic rules, discussed above, which are used to determine when and howto adjust funds between accounts.

Other types of user preferences include a maximum number of transactionsper month in a particular account (e.g., some money market accounts setlimits on the number of transactions in a particular month). By settinga user preference (or logic rule) to limit the number of monthlytransactions, the financial management system will not recommend (orattempt to execute) too many transactions in a particular month. A usermay also set a preference that requires the financial management systemto predict expenses for the next seven days (e.g., based on historicalexpenses during similar periods) and maintain a “buffer” in the accountequal to the predicted expenses for the next seven days. Further, a usermay set a preference indicating that funds should not be adjusted unlessthe adjustment results in a savings of at least five dollars per day.

FIGS. 14-15 illustrate exemplary user interface screens illustratingvarious account entry fields and account recommendations. FIG. 14illustrates an example screen 500 generated by a web browser or otherapplication that allows a user to enter account information andpreferences. Each entry identifies an institution 502 associated withthe account and an account number 504. The user may select whether thefinancial management system has access to move funds into the account,out of the account, or both, by selecting the appropriate check boxes506. The user may also set a maximum amount that can be withdrawn fromthe account at a particular time or during a particular time period byentering the amount in field 508. The credit routing number for theaccount is entered in field 510 and the debit routing number for theaccount is entered in field 512.

Although not shown in FIG. 14, other fields may be provided in the userinterface to allow the user to enter additional preferences orinformation, such as interest rate, minimum balance the user wantsmaintained, etc. Certain account information (such as interest rate androuting numbers) may be obtained from the bank directly, therebyminimizing the information required to be entered by the user.

FIG. 15 illustrates another example screen 550 generated by a webbrowser or other application that allows a user to reviewrecommendations generated by the financial management system. In theexample of FIG. 15, one recommendation 552 is shown—to transfer fundsfrom the Wells Fargo Checking account into the Chase Savings account. Arecommended amount to transfer 554 has also been identified. If therecommendation is executed, the projected savings 556 over the next sixmonths is $26. The reasoning or analysis supporting the recommendationand the projected savings is provided at 558. The user can execute therecommendation by activating the “Execute” button 560 on the screen.After activating the “Execute” button, the financial management systemautomatically performs the necessary steps to transfer the recommendedfunds between the two accounts.

In an alternate embodiment, the user is given the option to modify theamount to be transferred between the two accounts. For example, the usermay only want to transfer $500 instead of the recommended $877. In thissituation, the financial management system is still able toautomatically perform the steps necessary to transfer $500 between thetwo accounts.

The systems and procedures discussed perform various financial analysisand generate one or more financial recommendations. To implement thefinancial, recommendations, such as transferring funds between accounts,one or more of the systems and/or procedures discussed below may beutilized. Furthermore, the systems and procedures discussed below can beused to transfer funds between accounts at the user's request, and notnecessarily based on any financial analysis or financialrecommendations. For example, the user may want to transfer fundsbetween two accounts in anticipation of a known withdrawal from theaccount receiving the funds. Thus, the systems and procedures discussedbelow are useful to transfer funds between accounts for any reason.

FIG. 16 illustrates an exemplary environment 570 in which funds aretransferred between various financial institutions using a paymentnetwork 572. Payment network 572 can be, for example, an ACH network, adebit network, a credit card network, or a wire transfer network. Threedifferent financial institutions 574, 576, and 578 are coupled topayment network 572, thereby allowing the three financial institutionsto exchange funds among one another. A commercial payment processor 580is coupled to financial institution 578 and a financial managementsystem 582. Financial management system 582 may be similar to thefinancial management system 220, discussed above. Financial managementsystem 582 is typically a neutral third party that performs variousfinancial transactions on behalf of a user. Thus, financial managementsystem 582 is not necessarily associated with any financial institution.

Financial management system 582 initiates the transfer of funds betweenfinancial institutions based on user instructions and/or recommendationsbased on analysis of the user's accounts. Additionally, financialmanagement system 582 provides a common application or interface foraccessing all accounts for a particular user. Thus, the user can accessthe financial management system 582 in a common manner and retrieveinformation and execute fund transfers using common commands, etc.,regardless of the financial institutions involved. Furthermore,financial management system 582 registers multiple financial accountsfor one or more account holders. Thus, financial management system 582provides a single point for registering multiple financial accounts. Auser may register multiple accounts associated with different financialinstitutions at this single point. After registering all accounts, theuser can execute transactions between any of the registered accounts,regardless of whether the accounts are with the same or differentfinancial institutions. Thus, the user is not required to establishaccount information for every pair of financial institutions that fundsmay be transferred between. Instead, the user registers the informationassociated with each account (e.g., account number, bank name, accountpassword, etc.) once, which allows each registered account to exchangefunds with any other registered account, regardless of the financialinstitutions associated with the accounts. The receiving and storing ofthe registered account information may be performed, for example, byfinancial management system 582.

Although only three financial institutions 574, 576, and 578 are shownin FIG. 18, a particular environment may include any number of financialinstitutions coupled to payment network 572. Furthermore, as discussedbelow, the financial institutions 574, 576, and 578 may be coupled toone another via multiple payment networks.

Typically, payment network transactions are performed by financialinstitutions that are members of the payment network 572. Thus,financial management system 582 is not able to initiate transactionsdirectly on the payment network 572 unless it is a member of the paymentnetwork. Instead, financial management system 582 initiates transactionsthrough commercial payment processor 580 and financial institution 578.Financial institution 578 is capable of executing the requestedfinancial transactions using payment network 572. Commercial paymentprocessor 580 provides another interface to the payment network 572.

In an alternate embodiment, payment processor 580 is not required.Instead, financial management system 582 sends instructions directly tofinancial institution 578, which executes the instructions using paymentnetwork 572. In another embodiment, financial institution 578 is notrequired. Instead, financial management system 582 sends instructions tocommercial payment processor 580, which executes the instructions onpayment network 572.

Some financial institutions, such as certain brokerage films and creditunions, are not coupled to the payment network 572. These financialinstitutions use an intermediate financial institution to gain access topayment network 572. For example, in the environment of FIG. 16, abrokerage firm may gain access to payment network 572 through financialinstitution 574 or 576.

FIG. 17 is a flow diagram illustrating a procedure for transferringfunds between two financial institutions. Initially, a user's accountinformation is registered with the financial management system (block588). After analyzing a user's asset accounts and/or debt accounts asdiscussed above (or based on a user's request to transfer funds betweentwo accounts), the financial management system generates a fund transferinstruction (block 590). The fund transfer instruction can be dividedinto two separate transactions: a debit instruction (for the accountfrom which the funds are to be withdrawn) and a credit instruction (forthe account to which the funds are to be deposited). The debitinstruction and the credit instruction are communicated to a paymentprocessor (block 592). The payment processor initiates the requesteddebit and credit transactions through an intermediate financialinstitution (e.g., financial institution 578 in FIG. 16) that is coupledto the payment network (block 594). The debit transaction and/or thecredit transaction can be performed in real-time or deferred. The debittransaction is received and executed by the appropriate financialinstitution (block 596) and the credit transaction is received andexecuted by the appropriate financial institution (block 598). If thefinancial management system has additional fund transfers to execute(block 600), the procedure returns to block 590 to execute the nexttransfer. The procedure terminates after executing all fund transfers.

For example, in the environment of FIG. 16, the financial managementsystem 582 receives user account information during a user registrationprocess. Next, the financial management system 582 analyzes the user'saccounts and determines whether funds should be transferred from theuser's checking account at financial institution 574 to the user'ssavings account at financial institution 576. To initiate this fundtransfer, financial management system 582 generates a debit instructionto withdraw the appropriate funds from the user's checking account atfinancial institution 574. Additionally, financial management system 582generates a credit instruction to deposit the appropriate funds (equalto the funds withdrawn by the debit instruction) into the user's savingsaccount at financial institution 576. The instructions are thencommunicated via payment processor 580 and financial institution 578onto the payment network 572.

Alternatively, fund transfers can occur as one-time transfers initiatedby the user (e.g., transfer $500 from the user's savings account to theuser's checking account) or as periodic transfers (e.g., transfer $750from the user's money market account to the user's checking account onthe 12th day of each month). Additionally, fund transfers can occurbased on one or more rules, such as transfer $600 from the user'ssavings account to the user's checking account if the checking accountbalance falls below $300.

FIG. 18 illustrates another exemplary environment 620 in which funds aretransferred between various financial institutions using multiplepayment networks 626 and 628. In this example, a first financialinstitution 622 is coupled to payment network 626 and a second financialinstitution 624 is coupled to payment network 628. A third financialinstitution 630 is coupled to both payment networks 626 and 628. Afinancial management system 632 is coupled to financial institution 630.Financial management system 632 is similar to the financial managementsystem 220, discussed above.

If a fund transfer is required between accounts at the two financialinstitutions 622 and 624, the financial management system 632 generatesa fund transfer instruction. The fund transfer instruction may includethe account information and financial institution information for theaccounts involved, the value to be transferred, and other information.In this example, the transfer instruction is separated into twodifferent transactions: a first transaction that withdraws theappropriate funds from an account at one financial institution and asecond transaction that deposits those funds into an account at thesecond financial institution. Although two different transactions occur,the fund transfer appears as a single transaction to the user or accountholder.

The environment shown in FIG. 18 may be referred to as a “hub-and-spoke”arrangement in which financial management system 632 is the “hub”, andfinancial institutions 622 and 624 each represent a “spoke”. Inalternate embodiments, the environment in FIG. 18 can be expanded toinclude any number of spokes coupled to any number of financialinstitutions via any number of payment networks. This configurationallows financial management system 632 to control the execution oftransactions between any of the financial institutions.

FIG. 19 illustrates another exemplary environment 650 in which funds canbe transferred between various financial institutions using a paymentnetwork 652. In this example, a pair of financial institutions 654 and656 are coupled to the payment network 652. A financial managementsystem 658 is also coupled to the payment network 562 and a thirdfinancial institution 660. In this example, the financial managementsystem 658 is capable of executing certain transactions directly onpayment network 652, but requires a financial institution (or commercialpayment processor) to execute other transactions on payment network 652.Thus, financial institution 660 is utilized for those transactions thatcannot be executed directly by the financial management system 652.

Before a user or entity is permitted to execute financial transactionsusing the financial management system discussed herein, variousauthentication procedures and/or risk analysis procedures may beperformed to prevent unauthorized account access and reduce the risk ofallowing a user to execute a high-risk transaction. A high-risktransaction is, for example, a transaction that involves a large amountof money. As mentioned above with respect to FIG. 4, authentication andrisk analysis module 240 verifies that the user (or entity) accessingthe financial management system is authorized to access a particularaccount and analyzes the risks associated with allowing a particularuser to access the financial management system or execute a particulartransaction using the financial management system. Authentication andrisk analysis module 240 is capable of collecting and analyzing variousinformation when authenticating a user and analyzing risks. Module 240provides a flexible analysis and authentication architecture that can becustomized to meet the needs of a particular system or organization.Although particular examples discuss the analysis and/or authenticationof a user or a user account, the procedures and systems discussed hereincan be used to analyze and/or authenticate any entity and any type ofaccount. Further, the procedures and systems discussed herein can beused with any type of transaction, such as transactions between twofinancial accounts (at the same or different financial institutions),transactions between two individuals (person-to-person), transactionsbetween two merchants (merchant-to-merchant), and transactions betweenan individual and a merchant (person-to-merchant or merchant-to-person).

FIG. 20 is a block diagram showing exemplary components and modules ofthe authentication and risk analysis module 240. A user and accountinformation collection module 700 collects information about a user aswell as the user's financial accounts (e.g., asset accounts and debtaccounts). This information may be retrieved directly from the user ormay have been previously obtained from the user and stored in thefinancial management system. After collecting the information about theuser and the user's accounts, the collection module 700 organizes theinformation into a common format and communicates the information to anauthentication and risk analysis engine 704.

A financial institution and market data collection module 702 collectsinformation about particular financial institutions and about currentmarket interest rates. The information about financial institutions maybe retrieved from the financial institutions themselves or from one ormore market information services that provide information about variousfinancial institutions. The information relating to current marketinterest rates is collected from one or more market informationservices. After collecting the financial institution information and themarket data, collection module 702 communicates the collectedinformation and data to the authentication and risk analysis engine 704.

An authentication analysis logic 706 defines a set of logic rules and/orprocedures used to authenticate a particular user. A risk analysis logic708 defines a set of logic rules and/or procedures used to analyze therisk associated with a particular user or a particular action, such as atransfer of funds between accounts. Additional details regarding theauthentication of users and analyzing the risk associated with a user oraction are provided below.

Authentication and risk analysis engine 704 authenticates a particularuser by applying the authentication analysis logic 706 to theinformation collected about the user. Authentication and risk analysisengine 704 also analyzes the risk associated with a particular user or aparticular action by applying the risk analysis logic 708 to theinformation collected about the user, the user's accounts, and theparticular action requested by the user. After analyzing the informationand logic mentioned above, the authentication and risk analysis engine704 generates one or more determinations regarding whether the user isauthenticated and the risk associated with the user and the particularaction. These determinations are output on a communication link 710 foruse by other modules or components in the financial management system.

FIG. 21 is a flow diagram illustrating a procedure for authenticating auser's identity. The procedure illustrated in FIG. 21 may be performed,for example, by authentication and risk analysis module 240. Initially,a user generates a request to access one or more accounts using thefinancial management system discussed herein (block 722). For example,the user may want to transfer funds between two financial accounts. Theprocedure then authenticates the user's identity (block 724). Theprocedure authenticates the user's identity by receiving authenticatinginformation from the user. Examples of authenticating informationinclude name, address, social security number, and the like.

If the user is establishing access to a new account, the user's identitymay be authenticated by collecting and verifying various informationabout the user. Example information includes the user's name, address,social security number, and driver's license number. This informationcan be verified using a driver's license datasource, a phone datasourceand/or a credit reporting database, such as the credit informationservices available from Equifax Inc. of Atlanta, Ga.

When authenticating a user, additional information may be received(e.g., from a credit reporting database or other source). Thisadditional information may include verifying that the user is at least18 years old. The system may also check the social security files fornumbers assigned to deceased persons, numbers reported missing, ornumbers that were never issued. The user's phone number area code iscompared with the user's state of residence for further verification.The user's current address and the user's previous address can beverified as valid mailing addresses using a credit reporting agencydatabase and/or address updates provided by the United States PostalService (USPS). Credit reporting agencies may access other sources suchas utility bill or telephone bill databases that contain informationreported by the providers of those services. The driver's licenseaddress may also be verified and compared to the format used in thestate of issue. Any of the verification methods mentioned herein may beused alone or in combination with other verification methods toauthenticate a user's identity.

Additionally, as part of authenticating the user's identity, the systemmay consider whether the same address has been used multiple times byindividuals with different social security numbers or if the sameaddress was used multiple times by individuals with different lastnames. Multiple attempts to register for a particular service (such as afinancial service) by the same individual may also be considered inauthenticating a user's identity. Also, a user's identity may beauthenticated by validating an email address provided by the user. Anyone or more authentication procedures can be used to verify a particularuser's identity.

In one implementation any one or more of the following situations willresult in declining a user's request to access accounts:

-   -   User's profile includes a fraud victim indicator warning    -   User's social security number was never issued    -   User's social security number belongs to a deceased individual    -   User's social security number has been reported misused    -   User's address is a storage facility, mail receiving service,        post office, check cashing facility, telephone answering service    -   User's address is a campground or hotel/motel    -   User's address is a state or federal prison or detention        facility    -   User's address has been reported misused    -   User's supplied address is not verified    -   User's telephone number has been reported misused    -   User's telephone number is a phone booth or is a non-residential        phone number    -   User's credit profile contains a true name fraud warning    -   User could not be verified by credit reporting service

Referring again to FIG. 21, the procedure determines whether the user'sidentity has been authenticated; i.e., whether the authenticatinginformation is correct and/or valid (block 726). In a particularimplementation, this determination is performed using an authenticationassessment algorithm or application, such as the eID^(verifier) softwareproduct available from ESI (Equifax Secure Inc.) of Atlanta, Ga. TheeID^(verifier) software generates a score based on the level ofverification attained. This score may be referred to as a “confidencecode”. A higher score indicates a higher level of verification (i.e., ahigher level of confidence). If the software generates a score above apre-defined threshold, the user is verified. If the score does not meetthe pre-defined threshold, then the user is not verified. This thresholdmay be adjustable based on the level of verification desired by theoperator of the financial management system. In another embodiment, auser with a score near the pre-defined threshold may be verified, butlimited to a restricted level of service (e.g., only approved fortransactions less than $1000, or only approved for one transaction perbusiness day). Later, if the user is verified at a higher level, therestricted level of service may be changed to an unrestricted servicelevel.

Alternate verification procedures include requiring the user to submit acopy of their phone bill and a current bank statement or utility bill toverify their identity and authorization to access particular bankaccounts.

If the user's identity is not authenticated, the procedure of FIG. 21rejects the requested account access (block 728). If the user's identityis authenticated at block 726, the procedure continues to block 730,which verifies that the user is permitted to access each account. Thisverification is described below with reference to FIG. 22. If the user'saccess to one or more accounts is not verified, the procedure rejectsthe requested account access (block 728). If access to the accounts isverified, the procedure allows the user's access to the accounts (block734).

FIG. 22 is a flow diagram illustrating a procedure for verifying theaccount access rights of a particular user and analyzing risksassociated with the particular user. The procedure of FIG. 22 can beimplemented, for example, by authentication and risk management module240. Initially, a user generates a request to perform a particularaction (block 740). The procedure then determines the level of accountaccess available to the user generating the request (block 742). Thislevel of account access is determined, for example, when a user isauthenticated. At block 744, the procedure determines whether the useris authorized to access the accounts necessary to perform the requestedaction.

This determination may be performed using an online verificationprocess, a test transfer process, or by providing a voided check oraccount statement for the account being accessed. Additionally, theauthorizing a user's right to access an account may be performed using atrusted third party (e.g., a trusted database of user accountinformation) or by the financial institution associated with the accountbeing authorized. The online verification process requires the user toenter their username and password for the account being accessed. Onlineverification is then performed by validating the user's accountinformation from the financial institution.

For example, information may be “harvested” or “scraped” from one ormore web pages based on user-provided account access information. Thismethod of obtaining information is referred to as “data harvesting” or“screen scraping”. Data harvesting allows a script (or other process) toretrieve data from a web site. The data harvesting procedure is capableof navigating web sites and capturing data from individual HTML(hypertext markup language) pages. A parser extracts specific data (suchas account balance or account holdings) from the individual HTML pages.This extracted data is used (individually or in combination with otherinformation) to validate an account and/or a user requesting atransaction associated with the account.

Instead of “harvesting” or “scraping” data from a web page, data mayalso be retrieved from other financial data sources. For example, datacan be received from a source that supports the Open Financial Exchange(OFX) specification or the Quicken Interchange Format (QIF). OFX is aspecification for the electronic exchange of financial data betweenfinancial institutions, businesses and consumers via the Internet. OFXsupports a wide range of financial activities including consumer andbusiness banking, consumer and business bill payment, bill presentment,and investment tracking, including stocks, bonds, mutual funds, and401(k) account details. QIF is a specially formatted text file thatallows a user to transfer Quicken transactions from one Quicken accountregister into another Quicken account register or to transfer Quickentransactions to or from another application that supports the QIFformat.

If the online verification process fails, the user is asked to proceedwith the test transfer process or provide a voided check for theaccount. Similarly, if the financial institution's online service istemporarily unavailable, another process may be used to authorize theuser's access to the account. In a particular situation, any one or moreof the above processes can be used to authorize a user's right to accessa financial account or perform a particular action.

Using the test transfer process mentioned above, the financialmanagement system makes one or more deposits (or withdrawals) of randomamounts to the account provided by the user. The test transfer processidentifies the correct network routing numbers and parameters associatedwith the financial institution maintaining the account. These networkrouting numbers and parameters are used in subsequent transactions thatinvolve the account. The user is then requested to verify the amount ofthe deposits (or withdrawals) using their monthly paper statement, theironline account statement, or by contacting their financial institution.If the amounts provided by the user match the actual deposit amounts,the user may be authorized to access the account and execute financialtransactions with respect to that account.

Providing a voided check for the account is another way for a user toindicate that they are authorized to access the account. If there is anysignificant difference between the information provided by the user andthe information contained on the voided check, the user is notauthorized to access the account. Significant differences include, forexample, different first or last name, different address, alteration ofthe name or address on the cheek, or inconsistent routing and/or checknumbers.

Referring again to FIG. 22, if the user is not authorized to access theaccounts or the user is not authorized to execute the requested action,the requested action is rejected (block 748). If the requested action isrejected, the user may be provided with a reason for the rejection(e.g., not authorized to access one of the accounts involved in therequested action), thereby allowing the user to correct the reason forthe rejection.

If the user is authorized to access the account and to execute therequested action, the procedure retrieves risk information related tothe user (block 752). To help analyze risks associated with particularusers, certain information is recorded on an ongoing basis. For example,the dollar amount and movement of funds between user accounts ismonitored, including the overall behavior of the user as it relates tothe funds transfer service. The success rate of the transaction and thetype of failures is monitored and used to predict future behavior and/orfuture results. The recorded information is then used to manage risk byincreasing or decreasing transaction dollar limits and increasing ordecreasing the number of settlement days associated with thetransaction. For example, a user determined to be a higher risk may havea decreased dollar limit on each transaction and may experience a longersettlement period than a user determined to be a lower risk.

The system may also monitor the available average account balance foreach of the user's accounts. This average balance information can beused as part of the risk management decision. As a particular user makestransactions, the system retrieves the user's transaction history (e.g.,over the past three months or six months) as well as the most recent(e.g., over the past 3-5 days) transactions. The system interprets thepatterns embedded in the previous transactions and responds byidentifying abnormal areas that may indicate increased risk. Forexample, if the user has been making transfers of $200-300 betweenaccounts and then adds a new account and requests a $5000 transfer, thesystem will signal an abnormal request because this request does notmatch the previous behavior. A customer service agent may then contactthe customer to obtain a verbal confirmation. Alternatively, thesettlement date may be extended to ensure that the transaction iscompleted properly or the transaction may be refused if the risk is toohigh.

The procedure then determines whether the user is a good risk (block734) by analyzing the information collected and identifying unusualpatterns in the information or the current transaction request.

If the procedure determines that the user is not a good risk, theprocedure rejects the requested action (block 748). Otherwise, theprocedure continues to block 756, which executes the requested action.Although the requested action is executed, certain conditions (such aschanging the settlement date or limiting the transaction dollar amount)may be placed on the transaction depending on the risk level, asdiscussed above. The procedure illustrated in FIG. 22 may be repeated inresponse to each user request to perform a particular action.

Thus, a system and method has been described that analyzes multiple useraccounts to determine whether those accounts are optimized, or close tooptimized, and adjusts accounts based on this analysis or based oninstructions from the user. This system provides a single point ofregistration for a user to register all financial accounts. The systemalso provides a common login process and common log of transactionsrelating to all registered accounts. Further, the system authenticates auser's identity and verifies that the user is authorized to accessparticular accounts and perform certain actions related to thoseaccounts. The system also determines whether the user, the accounts, andthe requested action represent a good financial risk.

Although the description above uses language that is specific tostructural features and/or methodological acts, it is to be understoodthat the invention defined in the appended claims is not limited to thespecific features or acts described. Rather, the specific features andacts are disclosed as exemplary forms of implementing the invention.

1-30. (canceled)
 31. A financial system, comprising: at least one memorythat stores computer-executable instructions; and at least one processorconfigured to access the at least one memory and execute thecomputer-executable instructions to: receive user information for a userassociated with a financial account; identify, based at least in part onat least a portion of the user information, a score indicative of alevel of verification of an identity of the user; determine that thescore is within a tolerance of a threshold value; limit the user to arestricted level of service for the financial account responsive to thedetermination that the score is within the tolerance of the thresholdvalue; receive, on behalf of the user, account access information foraccessing the financial account; access a Web site associated with thefinancial account based at least in part on the account accessinformation; harvest account information associated with the financialaccount from one or more Web pages associated with the Web site;validate, based at least in part on the account information harvestedfrom the one or more Web pages, at least one of (i) the user or (ii) thefinancial account; and authorize the user to access the financialaccount to initiate execution of a financial transaction that satisfiesthe restricted level of service responsive to validation of the at leastone of: (i) the user or (ii) the financial account.
 32. The financialsystem of claim 31, wherein the at least one processor is furtherconfigured to execute the computer-executable instructions to: obtainadditional user information from an external data source, wherein thescore is further identified based at least in part on the additionaluser information.
 33. The financial system of claim 32, wherein theexternal data source comprises one of: (i) a driver's license datasource; (ii) a phone data source; (iii) a credit reporting data source;(iv) a postal service data source; or (v) a government data source. 34.The financial system of claim 31, wherein the account access informationcomprises at least one of: (i) a username; or (ii) a password.
 35. Thefinancial system of claim 31, wherein the information harvested from theone or more Web pages comprises information retrieved from one or morefinancial data sources.
 36. The system of claim 31, wherein the score isa first score and the level of verification of the identity of the useris a first level, and wherein the at least one processor is furtherconfigured to execute the computer-executable instructions to: identifya second score indicative of a second level of verification of theidentity of the user; determine that the second score exceeds thethreshold value; provide the user with an unrestricted level of servicefor the financial account.
 37. A method, comprising: receiving, by acomputerized financial system comprising one or more computers, userinformation for a user associated with a financial account; identifying,by the computerized financial system and based at least in part on atleast a portion of the user information, a score indicative of a levelof verification of an identity of the user; determining, by thecomputerized financial system, that the score is within a tolerance of athreshold value; limiting, by the computerized financial system, theuser to a restricted level of service for the financial accountresponsive to determining that the score is within the tolerance of thethreshold value; receiving, by the computerized financial system onbehalf of the user, account access information for accessing thefinancial account; accessing, by the computerized financial system, aWeb site associated with the financial account based at least in part onthe account access information; harvesting, by the computerizedfinancial system, account information associated with the financialaccount from one or more Web pages associated with the Web site;validating, by the computerized financial system and based at least inpart on the account information harvested from the one or more Webpages, at least one of (i) the user or (ii) the financial account; andauthorizing, by the computerized financial system, the user to accessthe financial account to initiate execution of a financial transactionthat satisfies the restricted level of service responsive to validatingthe at least one of (i) the user or (ii) the financial account.
 38. Themethod of claim 37, further comprising: obtaining, by the computerizedfinancial system, additional user information from an external datasource, wherein the score is further identified based at least in parton the additional user information.
 39. The method of claim 38, whereinthe external data source comprises one of (i) a driver's license datasource; (ii) a phone data source; (iii) a credit reporting data source;(iv) a postal service data source; or (v) a government data source. 40.The method of claim 37, wherein the account access information comprisesat least one of: (i) a username; or (ii) a password.
 41. The method ofclaim 37, wherein validating is based at least in part on informationretrieved from one or more financial data sources.
 42. The method ofclaim 37, wherein the score is a first score and the level ofverification of the identity of the user is a first level, the methodfurther comprising: identifying, by the computerized financial system, asecond score indicative of a second level of verification of theidentity of the user; determining, by the computerized financial system,that the second score exceeds the threshold value; providing, by thecomputerized financial system, the user with an unrestricted level ofservice for the financial account.
 43. A financial system, comprising:at least one memory that stores computer-executable instructions; and atleast one processor configured to access the at least one memory andexecute the computer-executable instructions to: identify userinformation associated with a user and a financial account of the userand at a financial institution; receive, on behalf of the user, accountaccess information for accessing the financial account; perform anonline verification process to determine whether the user is authorizedto access the financial account, wherein the online verification processcomprises accessing a Web site with the account access information toharvest account information associated with the financial account;determine that (i) the online verification process failed to verify thatthe user is authorized to access the financial account, or (ii) the Website is at least temporarily unavailable; direct, responsive todetermining that the online verification process failed to verify thatthe user is authorized to access the financial account or that the Website is at least temporarily unavailable, a transaction associated withthe financial account for a transaction amount unknown to the user;receive, on behalf of the user, a user-specified transaction amount;confirm that the user-specified transaction amount matches thetransaction amount; and authorize use of the financial account on behalfof the user.
 44. The financial system of claim 43, wherein the at leastone processor is further configured to execute the computer-executableinstructions to: authenticate, prior to performing the onlineverification process, an identity of the user based at least in part onthe user information.
 45. The financial system of claim 44, wherein theat least one processor is further configured to execute thecomputer-executable instructions to obtain additional information froman external data source, and wherein the at least one processor isconfigured to authenticate the identity of the user further based atleast in part on the additional information.
 46. The financial system ofclaim 45, wherein the external data source comprises one of: (i) adriver's license data source; (ii) a phone data source; (iii) a creditreporting data source; (iv) a postal service data source; or (v) agovernment data source.
 47. The financial system of claim 45, whereinthe additional information comprises a score based on a level ofverification associated with the user, and wherein the at least oneprocessor is configured to authenticate the identity of the user byexecuting the computer-executable instructions to compare the score to athreshold value.
 48. The financial system of claim 47, wherein the atleast one processor is configured to authenticate the identity of theuser by executing the computer-executable instructions to: determinethat the score exceeds the threshold value; grant the user anunrestricted level of service associate with the financial account. 49.The financial system of claim 47, wherein the at least one processor isconfigured to authenticate the identity of the user by executing thecomputer-executable instructions to: determine that the score is withinan acceptable tolerance of the threshold value; and limit the user to arestricted level of service associated with the financial account. 50.The financial system of claim 43, wherein the transaction comprises adeposit to the financial account, a withdrawal from the financialaccount, or a random transaction amount.